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Good Points Blog

Turn bad customer experiences into retention opportunities

We all make mistakes, and while most people believe that everyone deserves a second chance, brands often find that a single foul-up can result in the loss of a customer. So how can your organization fight that response? In our latest survey, we set out to answer that question, and, in particular, the role compensation plays in customer recovery.

Consumer compensation behaviors

It turns out, only one in three consumers (33%) are compensated after a negative experience – a figure brands should take note of, as 60 percent of American consumers are not likely to stay with a brand if they do not receive some sort of compensation. But compensation is not a silver bullet. In some cases, when the compensation is deemed inadequate by the recipient, compensation can make a customer feel worse. And for nearly 20 percent of Americans, they’re not looking for a financial response – they’d be happy with a simple apology.

As experts in customer loyalty for more than 30 years, Connexions Loyalty helps organizations motivate, reward and retain their customers, employees and partners. The world’s top brands turn to us for loyalty management, consumer rewards, rewards fulfillment and card benefits. Our loyalty programs are available to more than 200 million people in North America, South America, Africa and Asia. Connexions Loyalty, an Affinion Group company, employs 800 talented team members with offices in the United States, Brazil and Singapore.